Parliament Starts Deliberation on Controversial Mining Law
Australia's controversial 30 per cent minerals resource rent tax (MRRT) law gets introduced to Parliament on Wednesday amid political grandstanding and divided sentiment of voters.
Independent MP Tony Windsor had said he wants all coal seam gas (CSG) exploration suspended until definitive results are given by independent research of CSG's impact on the environment.
"I'm not open to negotiation. I've made it plain that unless something is done then I won't be supporting the legislation," Windsor told ABC Television on Tuesday.
Last month, a poll participated by almost 2000 people conducted by the Australian National University showed 81 per cent supported a tax on quote "very profitable" mining companies, and 59 per cent believed mining companies should pay more tax.
Treasurer Wayne Swan has said they will ensure the benefits of Australia's non-renewable mineral wealth flow to all Australians.
At least 10 bills will be introduced by government to enable the setting up of the MRRT. The MRRT aims to tax the extraordinary profits of coal and iron ore miners from July 2012. Those expected to pay the biggest MRRT are the highly-profitable miners.
Assistant Treasurer Bill Shorten defended the MRRT will allow all Australians to share in the mining boom as it will definitely last forever.
The government has to make the most of the opportunity while the sun is shining," Shorten was quoted by The Business Spectator.
"This time around Australia needs to keep some of the proceeds of the boom," he added.
Revenues from MRRT
Revenue from the MRRT is expected to fund a billion-dollar tax break for small business, a cut to the corporate tax rate, an increase in compulsory superannuation contributions and improve regional infrastructure.
Apart from the MRRT, debate on the Petroleum Resource Rent Tax Assessment Amendment also gets introduced to the Lower Parliament on Wednesday. The draft Petroleum Resource Rent Tax Assessment Amendment aims to extend the tax to all oil and gas projects. Nine other related bills are also being continuously debated on.
The entire package will be referred to the House of Representatives economics committee, after which committee submits a report to parliament by November 21.
Government is hoping the bills will pass the lower house by yearend.